Claiming bad debts in filing taxes in India

Querist : Anonymous (Querist) 17 May 2011 This query is : Resolved
Hi,
I am a NRI and a bad old friend cheated me in India. I file my taxes in USA. There is a provision in US tax system to report bad debts. Is there anything like that in India?
Thanks in Advance.

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adv.rajendrasharma (Expert) 17 May 2011
hi there is provision under income tax act1961 for claiming bad debts ireecoverable as for as bad debts arised in course of business and profession in INDIA BUT U HVE TO FOLLOW TAX LAWS OF USA AT THE MOST U CAN FILE SUIT THRU UR REPREENSATATIVE DULY AUTHORISED AND APPOINTED IN INDIA FOR RECOVERY AS PER CIVIL LAW IN INDIA

Querist : Anonymous (Querist) 18 May 2011
Thanks!! What kind of proofs we need to present to IT department in India to report bad debts? Is there any amount limit on bad debts in a given year ?
Thanks again!

DEFENSE ADVOCATE.-firmaction@g (Expert) 18 May 2011
IT will say thanks in advance .

Querist : Anonymous (Querist) 19 May 2011
What do you mean?

Advocate. Arunagiri (Expert) 19 May 2011
The companies used to show the bad debts, it means a debt which was not collected even after a long time.

You said you are paying tax in US. So, the Indian system will not help you.

Querist : Anonymous (Querist) 19 May 2011
Sir, I incurred the bad debts in India. If I have income in India, I need to report both in USA and INDIA. Hence I need to go through both the tax systems. I don't really get what Mr.Your Advocate's answer is . Thanks anyway.

Surrender K Singal (Expert) 20 May 2011
How is your Bad Debts relatable to Indian Income ? If it is, then only such reporting / claim against Indian Income could be allowed, to be taxed as and when the same is recovered in future

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